Backdoor - IRA to Roth conversion steps on Fidelity of post tax 6k
Blinders, Noob here with Backdoor Roth, let me know if this is a viable option for converting post tax amount of 6K as Roth IRA rollover. I am not eligible to contribute directly to a ROTH ira account 1) transfer (post tax) 6K from a savings account to traditional IRA account(Fidelity) 2) open Roth account 3) on Fidelity, transfer from traditional IRA to Roth account Will these steps be deemed as backdoor IRA to roth conversion per IRS? #personalfinance
To keep it simple, do the conversion for 2020 before Dec 31st 2020. If you do in 2021, the taxe reporting gets complicated.
I am doing the same exactly right now, haha. Also a noob. Not sure why the fidelity website says I owe taxes on that conversion. Any thoughts?
You will need to pay tax, only if the money in the IRA account is pre-tax money.
It's not pre tax money. I contributed from my savings account.
Yes those are the exact steps I do for Backdoor Roth on Fidelity. Specifically for step 3 the transfer from Traditional IRA to Roth IRA has to be done over the phone with Fidelity, there isn’t a way to do it from the website or the mobile app.
You can do it on the site now but you have to wait a day or so between the contribution and rollover. They can still do it right away over the phone for you